Friday, November 19, 2010

Geithner "Forgets" He Can Cut Spending and Other Misdirections

Treasury Secretary Geithner appears on Bloomberg Television’s “Political Capital with Al Hunt” this weekend. The show was filmed today.

When asked about maintaing the "Bush tax cuts" for the top income earners, Geithner replied:
“It is not responsible, and I could not recommend to the president in good conscience, that we go out and borrow $700 billion to make those high-end tax cuts permanent,” Geithner said.

Who said anything about borrowing money? It should be all about cutting government spending, if you really want to get the economy going.

On Europe, Geithner said a financial rescue of Ireland could mark an end to the continent’s sovereign debt crisis. He did not expalin how a rescue of Ireland would, for example, help Portugal, which has financial problems even more serious than those of Ireland.

He said China is allowing its currency to strengthen, and that “we want to make sure they sustain that.” He did not address how  China's allowing the strengthening of its currency would negatively impact China's purchases over Treasury securities, which could lead to a financial crisis in the U.S.

1 comment:

  1. I can promise you that when I get my tax increase I will show the government how to cut spending. In fact I'll cut $3 for every $1 in additional taxes I have to pay.